Why Ice Floats. A substance floats if it is less dense, or has less mass per unit volume, than other components in a mixture. For example, if you toss a handful of rocks into a bucket of water, the rocks, which are dense compared to the water, will sink. The water, which is less dense than the rocks, will float.
What is the effective annual rate? 2) You want to buy a new sports car from Muscle Motors for $53,000. The contract... show more 1) Big Dom's Pawn Shop charges an interest rate of 16 percent per month on loans to its customers. Like all lenders, Big Dom must report an APR to consumers.
However, since interest is compounded monthly, the actual or effective interest rate is higher because interest in the current month compounds against interest in the previous month. As it turns out, a 12% APR (nominal) interest loan has an effective (APY) interest rate of about 12.68%. On a loan with a life of only one year, the difference between 12% and 12.68% is minimal. On a long-term loan such as a mortgage, the difference can be significant.